Define: Insolvency

UK Accounting Glossary

Definition: Insolvency

Quick Summary of Insolvency

A state where an individual or organisation can no longer meet financial obligations with lender(s) when their debts come due.


What is the dictionary definition of Insolvency?

Dictionary Definition

  1. The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant’s insolvency.
  2. Insufficiency to discharge all debts of the owner; as, the insolvency of an estate.
  3. The condition of having more debts than assets.


Full Definition of Insolvency


Insolvency FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Insolvency. Payroll & Accounting Heaven Ltd. November 13, 2019
Chicago Manual of Style (CMS):
Insolvency. Payroll & Accounting Heaven Ltd. (accessed: November 13, 2019).
American Psychological Association (APA):
Insolvency. Retrieved November 13, 2019, from website:

Definition Sources

Definitions for Insolvency are sourced/syndicated from:

This glossary post was last updated: 24th December 2018.